Mercedes-Benz signs first battery deal with Samsung SDI... "30 trillion won bet on K-battery"

[The Financial News] Samsung SDI has been added to Mercedes-Benz's battery supply chain for the first time. Mercedes-Benz's top executives visited Seoul in person and formally signed a multi-year supply deal with Samsung SDI for high-nickel batteries, which the industry estimates at around 10 trillion won. Mercedes-Benz also reaffirmed its strategic partnership with LG Energy Solution on the same day, accelerating its electrification strategy centered on K-battery. Combined with LG Energy Solution's more than 25 trillion won in orders, the cumulative volume secured by K-battery makers from Mercedes-Benz now far exceeds 30 trillion won.
Ola Källenius, CEO of Mercedes-Benz, and Jörg Burzer, CTO, met with Choi Joo-sun, president and CEO of Samsung SDI, at Andaz Seoul Gangnam in Gangnam District, Seoul, on the 20th and formally signed a multi-year contract to supply high-nickel batteries for the next-generation electric vehicle platform. This is the first battery supply agreement between Mercedes-Benz and Samsung SDI.
Källenius said, "This visit to Korea is to mark an important milestone for Mercedes-Benz," adding, "We want to unveil the Mercedes-Benz C-Class with EQ Technology, the cornerstone of a multi-year new vehicle launch campaign, and lay the foundation for the next wave of innovation through strategic cooperation with Korean suppliers." Mercedes-Benz is pushing ahead with a roadmap to launch more than 40 new models worldwide from 2025 to 2027 and to line up electrified models across all segments by 2030.
Although details were not disclosed, the industry estimates that the deal could be worth about 10 trillion won. Analysts say the contract is likely to be a major order, given that such deals are usually signed for long terms of seven to 10 years or more, in line with typical vehicle platform cycles, and considering the cost of EV batteries, which is estimated at more than 100 billion won per GWh.
An industry source said, "Samsung SDI's supply to Mercedes-Benz is tied to a 2028 electric vehicle project, so the volume itself is quite large," adding, "There is a high possibility that large-scale orders will be centered on prismatic batteries."
The deal was finalized after months of discussions. At a roundtable on the same day, Burzer said, "During my visit to Korea in January, I had my first conversation with Samsung SDI, and I came back in April to sign the actual contract," adding, "Through this cooperation, we will further accelerate innovation in electrification, digitalization and future mobility."
"We source batteries through a global network that includes Chinese companies, Europe's ACC, and Korean companies," he said. "We plan to expand our partnerships with Korean companies further, and today's contract with Samsung SDI is part of that effort."
There were also signs that the partnership could extend beyond high-nickel batteries. Källenius said on the same day that all-solid-state batteries are "a very interesting technology" and that Mercedes-Benz is "currently continuing discussions with several partners, including Samsung SDI."
Mercedes-Benz also said it reaffirmed its partnership with the LG Group, with which it has maintained long-term cooperation in areas such as displays and batteries. In particular, the company plans to push ahead with its global electrification strategy without disruption, based on its strong cooperation with LG Energy Solution, which was selected as a lithium iron phosphate (LFP) battery supplier in October last year.
According to the battery industry, the total volume LG Energy Solution supplies to Mercedes-Benz exceeds 25 trillion won. The two companies have announced four supply contracts in total, starting with a 50.5GWh deal in October 2024, followed by a total of 107GWh in September 2025 (75GWh in the U.S. and 32GWh in Europe), and a 2.06 trillion won LFP supply contract in December 2025.
As a result, the combined cumulative and new orders secured by LG Energy Solution and Samsung SDI from Mercedes-Benz will far exceed 30 trillion won. LG Energy Solution's LFP and 46-series cylindrical batteries will serve the mid- and low-priced and premium segments, respectively, while Samsung SDI's high-efficiency prismatic batteries will target new models after 2028.
An industry source said, "The fact that Mercedes-Benz, a symbol of Europe's premium brands, has formed partnerships worth tens of trillions of won with Korean companies shows the product trust placed in K-battery," adding, "Going forward, the quality competitiveness and product portfolios of Korean battery makers will create synergy, helping them overcome the global EV demand slowdown and accelerate growth."
Meanwhile, observers say the contract with Samsung SDI could deepen cooperation between Mercedes-Benz and K-battery companies on next-generation all-solid-state battery technology. Samsung SDI is currently pushing ahead with all-solid-state battery supply for humanoids and electric vehicles, with mass production targeted for next year. Källenius said on the same day that all-solid-state batteries are "a very interesting technology" and that Mercedes-Benz is "currently continuing discussions with several partners, including Samsung SDI."
eastcold@fnnews.com Kim Dong-chan Reporter